Hon Hai confirms 'workplace issue' at China plant

BEIJING--Hon Hai Precision Industry Co. (2317.TW) said in a statement late Sunday that a "workplace issue" took place at a supplier factory in China, following a report Friday that alleged a strike had broken out at one of the company's supplier plants.

Hon Hai, also known by its tradename Foxconn, said the issue occurred at the facility of Jiangxi Xin Hai Yang Precision Components Co., located in China's eastern Jiangxi province.

Its statement followed a report Friday by watchdog group China Labor Watch, which said a strike broke out at the plant, with workers calling for higher wages.

Hon Hai said in its statement that "this is not a Foxconn company but, in keeping with our desire to see our suppliers address their workplace issues in a responsible manner, we have asked the management of this firm to work with its employees and local government representatives to resolve their concerns and ensure that they meet the high standards of workplace and living conditions that we expect from any firm associated with our company."

In recent months, Foxconn has faced a spate of labor problems. Last week it announced it was carrying out an investigation with Chinese law enforcement officials over allegations that Foxconn employees were involved in illegal payments from supply chain partners. Meanwhile late last year the company confirmed it had used child labor at one Chinese factory, and a large-scale riot broke out.

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